There is a legal difference and a regulatory difference.

This is ok with my partner as he looks at it as if we're already paying the bank 5.125% why not pay it to you instead.Questions:1) Are there regulatory requirements I must meet to provide this kind of private loan to a closely held LLC in California?

However, consider whether you are willing to manage the additional regulatory requirements and the specific needs of Section 8 tenants before deciding.

Doing business in all 50 states also means 50 state regulatory agencies in addition to the federal regulatory oversight institutional lenders fall under.

Some ideas from others:• bank loans are not available on some types of properties • the tight lending climate has made bank financing "out of reach" for many • seller financing is an "age old" tradition based on private property rights • these rules would prohibit even partial seller financing - i.e. a "seller second" • according to HUD's "Residential Finance Survey" in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear • an estimated 6 million Americans own a property other than their own primary residence • an estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties • 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing • approximately 5% of homes in US are for sale or for lease... seller financing may be key to liquidating this inventoryThe continued success of our industry as we know it is threatened by these proposed regulatory changes.

There has been a lot abuse and some state like Florida have created a regulatory office to go after abusers.It also depends on how you might approach it.

As far as the constitution is concerned, I think that the eviction moratorium could possibly give rise to a regulatory taking claim under the Fifth Amendment.

Remember, the system itself is setup to force persons into the licensure and regulatory measure, work-arounds are not well received, and actively worked to be "plugged".

The physical conversion should be simple enough so is it a regulatory issue? 

And yes, understanding the local regulatory landscape is huge.